May 19, 2020

Air Canada Releases Q4 Results and Announces Premium Economy Cabin

Air Canada
fourth quarter results
Boeing 777-300ER
premium economy cabin
Bizclik Editor
2 min
Air Canada Releases Q4 Results and Announces Premium Economy Cabin

 

Air Canada announced today a profitable fourth quarter and calendar year for the first time since 2008. Posting earnings $8 million in the fourth quarter of 2012, $0.03 per diluted share, Air Canada saw definite operating revenue improvement compared to a loss of $60 million in Q4 of 2011.

Annual revenue was also up. Air Canada reached $131 million or $.45 per diluted share, which was increased from 2011 which came in at a loss of $249 million.

"I am extremely pleased to report a strong fourth quarter and a full year net profit for Air Canada of $131 million in 2012," said Calin Rovinescu, President and Chief Executive Officer. "These results reflect the success of Air Canada's ongoing transformation aligned with strict cost control and disciplined capacity management.  In particular, the strong revenue performance of our international network was led by significant improvements, not only in the Pacific region but also on the Atlantic where we overcame challenges faced by the industry earlier in the year. Our focus remains firmly fixed on further cost reduction and increased revenue generation, including improved yields, positioning us well for the future.

Also announced today from Air Canada was the introduction of its International Premium Economy cabin. Guests will soon be able to take advantage of the new cabin which offers seats that are wider and have an increased recline, seven more inches of legroom than Economy, premium meals and complimentary bar service as well as priority check-in and baggage delivery. The new cabin will be offered starting July 11th, 2013 on Air Canada’s Montreal to Paris flights.

Additionally, Air Canada will be expanding and modernizing its fleet with the addition of five new Boeing 777-300ER aircraft which will arrive after previously announced Boeing aircraft in November and December of 2013 and February 2015. These additions will round out Air Canada’s Boeing 777 fleet to 23 aircraft.

"With the introduction of Premium Economy, Air Canada will begin offering customers a new, high-value option for enhanced comfort and service on international flights," said Ben Smith, Executive Vice President and Chief Commercial Officer.  "The delivery of five new Boeing 777-300ER aircraft over the next 12 months provides us with the right opportunity to launch a new cabin of service that will be offered on more of our international flights over time as we take delivery of new 787 aircraft.  We will continue to adapt our product to ensure our customers have competitive options to choose from - whether traveling on Air Canada mainline routes or with our leisure carrier, Air Canada rouge, to its vacation destinations."

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Jun 8, 2021

Six issues at the top of tax and finance leaders’ agenda

Tax
Compliance
financeleaders
Deloitte
Kate Birch
4 min
As businesses accelerate their transformation journeys, tax leaders are under increasing pressure to add strategic value. Deloitte reveals six tax trends

New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.

According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.

And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.

Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.

Trend 1: Businesses seek more strategic counsel from tax

Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.

According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”

Trend 2: Tipping point for resourcing models

Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.

Trend 3: Digital tax administration is moving faster than expected

in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.

"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."

Trend 4: Data simplification and lower-cost resourcing are top priorities

Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.

At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”

Trend 5: Skillsets are shifting

Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.

Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact 

Trend 6: 2020 brought productivity improvements

Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.

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